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Can Tho prepares first batch of rice to EU with zero tariff

Trung An High-tech Farming JSC based in the Mekong Delta city of Can Tho is completing the packaging of the first batch of rice to the EU, which will enjoy zero percent tax.

Earlier, the company signed rice contracts with three German consumers with a total of 3,000 tonnes, of which 150 tonnes of ST20 and Jasmine will be included in the first batch.

Can Tho, first batch of rice, export to EU, zero tariff, rice contracts, Free Trade Agreement,  French and Italian clients

Loading rice in containers at the Trung An JSC.

Trung An's General Director Pham Thai Binh said on August 27 that the company has exported rice to Europe for many years. However, this is the first batch to be delivered to the region since the EU-Vietnam Free Trade Agreement (EVFTA) took effect on August 1, with zero percent tariff, as compared with 5-45% in the past.

To be accepted in the EU, the rice must have clear origin and meet GlobalGAP or equivalent standards, according to Binh, adding that the company will sign more contracts with French and Italian clients in the time ahead.

Rice quotas for Vietnam under the EVFTA are expected to push the country's rice exports up from the second half of this year, according to the Ministry of Industry and Trade.

Under the EVFTA, the EU pledges to provide an annual rice quota of 80,000 tonnes to Vietnam and completely liberalise trade in broken rice.

Meanwhile, the EU also sets a range of conditions for those quotas such as origin certificates on Vietnamese rice. The rice exported to the EU must have authenticity certificates issued by Vietnamese authorities.

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Source: NDO/VNA

Can Tho, first batch of rice, export to EU, zero tariff, rice contracts, Free Trade Agreement, French and Italian clients
 
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